Golf E-commerce Brand Deep-Dive: 3 Easy Wins For 30% Growth

In this issue of the Amazon FBA deep-dive, we are analyzing a slightly different type of business: an e-commerce brand that started as a $160,000 acquisition on Flippa that has now grown into a brand valued in the mid-7 figures.

In 2019, Blue Tees Golf did $12,000 in revenue on Amazon. Currently, the estimated monthly revenue for Blue Tees Golf on Amazon is $380,000.

However, we estimate there is room to grow up to 30% more through the easy wins below.

This is what we cover in this deep dive:

  • Business Summary
  • Highlights
  • Setbacks
  • 3 Easy Wins to increase revenue
  • What is the exit valuation of this brand?
  • Actionable takeaways

Let’s get into it!

Blue Tees Golf Overview

Blue Tees Golf started as a Shopify brand back in 2016. It primarily drove traffic and sales through Facebook, Google AdWords, and email marketing. In September 2019, it was sold for $160,000 to an acquisition entrepreneur through Flippa.

At the time of sale, Amazon only accounted for $12,000 out of $580,000 in revenue in the trailing twelve months (TTM). 4 years later, they have expanded aggressively onto Amazon doing an estimated $380,000/month in revenue currently.

✅ Highlights

  • Core products have high prices ($200 – $350) and large number of reviews (400+)
  • Medium amount of branded traffic (1,000 brand searches/month)

❌ Setbacks

  • High revenue concentration – if the main listing goes down, revenue will drop 50%
  • Seasonal niche – interest peaks in May – August and declines during the winter

3 Easy Wins To Grow Blue Tees Golf By 30%

There are opportunities to significantly grow this brand. We break down the following easy wins:

  1. Improve listing SEO to increase organic rankings
  2. Add virtual bundles to cross sell other products
  3. Use social media advertising to increase on-Amazon traffic and revenue

Let’s get into it!

➡️ Win #1: Improve Listing SEO

On Amazon, your listing SEO encompasses your title, bullet points, description, and backend search terms. Including core keywords in each of these places can help you increase your organic ranking and relevancy in Amazon’s ranking algorithm.

Let’s analyze the core listing for Blue Tees Golf. The title is outlined in red.

image 26

The title is:

Blue Tees Golf – Series 3 Max with Laser Rangefinder with Slope Switch – 900 Yards Range, Slope Measurement, Magnetic Strip, Ambient Display, Flag Lock with Pulse Vibration, 7X Magnification

Ecommerce brands looking to expand onto Amazon need to be careful – they should included the product name but they should also include relevant keywords that will help customers find their product.

The bolded keyword shown above is the only relevant keyword for customers searching for rangefinders on Amazon.

In comparison to other golf rangefinders, the title is severely lacking and could be improved. Below you can see the page 1 for the term “golf rangefinder”. Blue Tees Golf is the only listing that doesn’t have this term in it’s title (and it’s a sponsored listing – not even organic).

image 27

Takeaway: Instead of stating all of the benefits in the title, I would include more primary keywords such as

  • golf rangefinder
  • golf rangefinder with slope
  • golf distance range finder

We estimate this would increase organic ranking and improve advertising efficiency – potentially increasing revenue by 10%.

➡️ Win #2: Create Virtual Bundles to increase Cross Selling

A brand like this has multiple accessories that can be bundled with the core product to increase average order value and customer lifetime value.

While Blue Tees Golf has created one bundle (shown below), they are missing the opportunity to implement virtual bundles across their entire product catalog.

image 28

They should be using virtual bundles to cross sell their magnetic hubs, clip bags, Bluetooth speaker, and divot repair tool. As can be seen below, customers are already purchasing these products. Virtual bundles would take up more space on the page and allow you to advertise these products directly.

image 29

Takeaway: Add virtual bundles to increase sales of similar products and take up more space on your Amazon listing. For Blue Tees Golf, we estimate incorporating virtual bundles into each of their listings and into their advertising strategy could increase revenue 5 – 10%.

➡️ Win #3: Use external traffic to increase Amazon organic ranking

Blue Tees Golf has one massive advantage over traditional Amazon FBA brands – Blue Tees Golf has a large amount of traffic to their website. And they are able to profitably run ads directing traffic to their site.

Blue Tees Golf currently advertises on Facebook/Instagram and Google AdWords. A sample of their Facebook ads is show below: taken from Facebook Ad Library

image 30

Amazon loves external traffic and provides a ranking boost to products that receive it. It’s not unusual to jump up 10-20 spots when a large amount of external traffic comes to Amazon, clicks on your listing, and purchases.

Most e-commerce stores want to direct traffic to their store where they own the customer experience and data. However, temporarily directing traffic to Amazon listings can provide a long term boost in organic rankings.

Takeaway: Use social media advertising to your Amazon listings over the course of 1 month to increase organic ranking on Amazon. The increased sales velocity will help you rank page 1 for high search volume terms. After 1 month, you can direct the social media advertising to your own site again. We estimate this could increase Amazon revenue by 15% over the long term.

How Much is Blue Tees Golf Worth?

This analysis will only focus on the Amazon side of this business. Shopify revenue is most likely equal to greater than the Amazon side.

With an estimated monthly revenue on Amazon of $380,000, the annual revenue rate on Amazon equates to $4,560,000.

Assuming a net profit margin of 15% gives us an annual profit of $684000. This ecommerce brand has strong positioning and has won numerous awards in its niche. Additionally, it’s Shopify presence and revenue warrants a stronger multiple than a traditional Amazon-only brand.

Valuation: The Amazon portion of this business is most likely worth $2,052,000 (5x multiple at $684,000). However, when we take into account the overall brand and Shopify revenue, this brand could easily be worth between $5,000,000 – $7,000,000. And to think, it all started with a $160,000 acquisition on Flippa!

3 Actionable Takeaways

Here are actionable takeaways that you can apply to your business today:

  1. Amazon SEO is one of the easiest aspects to change and improve. Continually evaluate your listings using tools like Helium10 to see where you measure up against the competition.
  2. Ecommerce brands should balance Amazon listing SEO with their own branded product names. Both are important for visibility in the Amazon algorithm and overall brand awareness.
  3. Brands with a large off-Amazon presence should use it to help their presence on Amazon. Using a profitable funnel to direct traffic to Amazon can result in long term gains in Amazon ranking and revenue.

Analyzed by Jon Elder

Jon has sold over $10 million in sales on Amazon since 2014 and exited 5 Amazon brands for millions. He now helps Amazon sellers experience the same level of success through 1:1 coaching. He is happily married with two kids in Texas!